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Real Estate Commission Splits in 2025: What Changed and What Didn't

The National Association of Realtors membership peaked near 1.5 million agents in 2022 and fell to roughly 1.1 million by 2024 after lawsuit settlements and market churn. Fewer agents does not mean easier money — it means the professionals who stayed are competing on service, transparency, and net proceeds.

The March 2024 NAR settlement in the Sitzer/Burnett case — $418 million — changed process, not physics. Buyers must sign agreements before touring homes. Commission amounts are disclosed and negotiated earlier. Sellers still pay buyer broker compensation in most transactions, but the conversation happens in daylight.

Total commission on a US resale home still clusters around 4.5–6% in many markets post-settlement, down slightly from the old 5–6% norm. On a $407,000 median sale (US Census Bureau, 2024), half a point is over $2,000 in gross commission gone. That comes out of the pool before your brokerage and co-broker take their shares.

Consumer Federation of America research has long shown US commissions among the highest in developed markets — Australia near 2%, the UK often 1–2%. Pressure to justify fees with service is structural now, not cyclical.

Your brokerage agreement matters as much as market rate. Keller Williams market centers often cap around $18,000–$21,000 annually on a 70/30 model with profit share. RE/MAX agents may pay $300–$2,000 per month in desk fees for 95–100% of commission on the back end. eXp’s 80/20 with a $16,000 cap rewards volume producers who hit cap by mid-year.

NAR reported median gross income of $56,400 for Realtors in 2022, but $80,700 for agents with 16+ years of experience. Half of agents close fewer than five deals per year. Your split only helps if you have closings. Model per-deal net, annual volume, and cap timing before you switch brokerages or discount your next listing.

Commission calculator
Secure & precise

Industry preset

Transaction

Sale price per property
$

Commission structure

Commission rate6%

Brokerage / broker pool

Brokerage share50%

Broker pool receives 50%

Broker allocation (% of commission)

Listing broker25%
Selling broker25%

Your role

Estimated take-home · Selling broker

$1,569.37

$750,000.00 sale · 6% commission rate

Total commission

$45,000.00

6% of sale

Brokerage share

$22,500.00

50% of commission

Broker pool

$22,500.00

50% of commission

Broker breakdown

Listing broker

$11,250.00

25% of commission

Selling broker · You

$11,250.00

25% of commission

Commission flow

Sale price$750,000.00
Commission (6%)$45,000.00
Brokerage (50%)$22,500.00

Broker pool allocation

Listing (25%)$11,250.00
Selling (25%)$11,250.00

Frequently asked questions

What is the average real estate commission split?

New agents often start at a 50/50 or 60/40 split with their brokerage on the agent side of the commission. Experienced producers negotiate 70/30, 80/20, or cap-based models. The “split” is separate from the 5–6% total commission paid by the seller.

How did the NAR settlement change commission splits?

The March 2024 Sitzer/Burnett settlement required written buyer agreements before showings and increased transparency on how buyer agent compensation is offered. It did not set a mandatory rate, but many markets have seen total commissions compress slightly toward 4.5–5%.

What is a good commission split for a new agent?

A 60/40 or 50/50 split with reasonable cap and low monthly fees is common for new agents. What matters is net income after cap, desk fees, E&O, and transaction charges — not the split printed on a recruiting flyer.

How does the eXp Realty cap model work?

eXp typically uses an 80/20 split until you have paid $16,000 to the brokerage in a contract year, then you keep 100% of your side until the anniversary resets. High producers benefit; low-volume agents may never hit the cap.

Read our NAR settlement commission guide →